On July 15, Paul Hernandez, formerly secretary-treasurer and Joint Apprenticeship and Training Committee Director of International Brotherhood of Electrical Workers Local 60 in San Antonio, was indicted in U.S. District Court for the Western District of Texas for embezzling an unspecified sum of funds from an employee benefit plan. The indictment follows a joint investigation by the Department of Labor's Office of Labor-Management Standards and Employee Benefits Security Administration.
By a wide margin yesterday, Virginia voters nominated State Senator R. Creigh Deeds as the Democratic Party candidate for governor. In so doing, they rejected the candidacy of former Democratic National Committee (DNC) Chairman Terry McAuliffe, a top Clinton confidante with a long history of influence-peddling. With roughly 75 percent of the ballots counted, Deeds had received about 50 percent of the tally, with McAuliffe and State Delegate Brian Moran each with roughly 25 percent. Deeds will face Republican Attorney General Bob McDonnell, who ran unopposed, in this November's general election. But the real news may be the defeat of McAuliffe, a powerful and ethically-challenged party fundraiser. Former President Bill Clinton, among other party stalwarts, actively had stumped on his behalf.
On April 2, William Thomas Brown, former financial secretary of International Brotherhood of Electrical Workers Local 886 in New Hope, Minnesota, was convicted in Hennepin County District Court of theft of union funds in the amount of $6,467.05. He was sentenced to three years probation and 30 days of home electronic monitoring, and ordered to make restitution. The conviction follows an investigation by the U.S. Labor Department's Office of Labor-Management Standards. (OLMS, 4/21/09).
On December 3, Fidel R. Garza, former president of American Federation of Government Employees Local 2063 in Albuquerque, was indicted in U.S. District Court for the District of New Mexico on 58 counts each for wire fraud and deprivation of honest services associated with the defrauding of the local by about $84,000.The charge follows an investigation by the U.S. Department of Labor. (OLMS, 12/19/08).
Minnesota Local Financial Secretary Charged with Theft
Congressman William Jefferson has a knack for attracting the wrong kinds of people with money.That skill earned him a high-profile federal indictment a year and a half ago.The Louisiana Democrat is going to need his friends, too, which include labor chieftains, when he goes on trial in Alexandria, Virginia early next year.Voters in his New Orleans district also are showing their loyalty.This November they handed him a runoff victory over his rival, Helena Moreno, in the Democratic primary.And they’re overwhelmingly likely to return him to Congress when he faces Republican challenger Anh Cao in the December 6 general election, which, like the primary, is being held late due to Hurricane Gustav.The man’s been leading a charmed life – at least if one ignores the possibility of a prison sentence of up to 235 years.
Deborah Anthony’s days of taking from the union till are over.On July 22, Anthony, ex-financial secretary for United Steelworkers Local 1196, was sentenced in U.S. District Court for the Western District of Pennsylvania to five years probation, one year of which must be spent in home detention, and pay $34,134.47 in restitution to the union.Prosecutors had charged that during 2003-2004 she wrote unauthorized checks to herself and third-party vendors.She pleaded guilty in March.The local represents workers at the Allegheny Ludlum plant in Brackenridge, northeast of Pittsburgh.The sentencing follows an investigation by the U.S.
On July 10, Betty Illig, former secretary-treasurer for Graphic Communications International Union Local 638-S and the Tri-State District Joint Council, was sentenced in U.S. District Court for the Northern District of Ohio to serve five years supervised release, one year of which must be spent in home confinement, serve 200 hours of community service, and pay $145,675 in restitution for embezzling union funds and submitting false records.She pleaded guilty in February.The local is located in East Liverpool, south of Youngstown.The sentencing follows an investigation by the U.S. Labor Department’s Office of Labor-Management Standards and Office of Inspector General.(OLMS, 7/16/08).
Bookkeeper for Houston Local Sentenced for Embezzlement
Being a union contractor can be risky, even if the labor boss with whom he does shady business has the same last name and is a lifelong friend.Such was the case for Donald “Gus” Dougherty, president of Dougherty Electric, Inc., in Philadelphia.On Monday, May 19, Dougherty pleaded guilty in federal court to bribing a business manager of International Brotherhood of Electrical Workers Local 98 to facilitate an off-the-books payroll scheme.He’d been charged last June in a 100-count indictment handed down following a joint investigation by the FBI, the IRS and the Department of Labor.The guilty plea comes on the heels of another guilty plea by him on April 15 to 98 counts that included operating an illegal cash payroll, stealing from a union benefit plan, and bribing a bank official.
Of all circumstances surrounding union corruption, few are sadder than those triggered by gambling losses.Such is the case of Joseph Capece, former longtime business manager of Local 163 of the International Brotherhood of Electrical Workers, based in Wilkes-Barre, Pa.On March 18, Capece, 60, was sentenced in U.S. District Court to six months in prison and fined $4,000 for thefts from his union.A resident of Nanticoke, Pa., he admitted in a February 2007 letter of resignation to the local president that his embezzlement was gambling-related.He pleaded guilty last September to stealing overall around $256,000.
On December 10, Danny E. Beyser, former financial secretary for Local 1638 of the United Mine Workers, was sentenced in U.S. District Court for the Northern District of West Virginia to one year and one day of incarceration and three years of supervised release, and was ordered to pay $80,135.40 in restitution to the union.Beyser, 52, a resident of Moundsville, W.V., pleaded guilty to embezzlement in October.He has paid back some of the money, but still owes more than $54,000. The plea and sentencing follow an investigation by the U.S. Labor Department’s Office of Labor-Management Standards.(Associated Press, 12/12/07; OLMS, 12/22/07).